Press Releases

Sept Îles, July 26, 2016 – Lise Thériault, Deputy Premier and Minister responsible for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development, and Pierre Arcand, Minister of Energy and Natural Resources, Minister responsible for the Plan Nord, and Minister responsible for the Côte Nord Region, announced on behalf of Dominique Anglade, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, that $175 million in funding would be granted to Tata Steel Minerals Canada in support of a direct shipping ore (DSO) iron mine project costing almost $1.5 billion.

This funding includes a $50-million loan from Investissement Québec, acting behalfof the government, and a $125-million equity stake via the Capital Mines Hydrocarbures fund.

“Support for this major project confirms our commitment to stimulating the growth of Québec’s mining industry, particularly in northern Québec, and to encouraging responsible development of our resources. It will also have substantial spinoffs for our economy, ultimately creating up to 550 good jobs in Québec,” explained Minister Lise Thériault.

Founded in 2010, Tata Steel Minerals Canada, an indirectly owned subsidiary of Tata Steel Ltd. and a joint venture with New Millennium Iron Corp. (NML), a company listed on the Toronto Stock Exchange, was established to develop the DSO project based on ore deposits in Québec and Newfoundland and Labrador. When complete, the project is expected to produce 6 million tonnes of iron ore annually.

“Tata Steel has demonstrated its commitment to doing business in Québec by making a $1-billion investment in the DSO project, which stands out for the innovative process used. Our government is proud to support initiatives such as this that will have positive spinoffs for Québec and that could make it possible to carry out new mining projects in the future,” said Minister for Mines Luc Blanchette.

“Our government is proud to support this project, which will contribute to the success of the Plan Nord by boosting activities such as transshipment at the Sept Îles port. Thanks to this initiative, Tata Steel Minerals Canada will be the first mining company in the Côte Nord to use the railway and dockyard facilities in the Pointe Noire sector, which were recently acquired by Société du Plan Nord,” added Minister Pierre Arcand.

“By giving local workers, including workers from Innu and Naskapi communities, the opportunity to specialize in the mining industry, we are developing our workforce and contributing to the local economy as well as paving the way for a partnership to benefit economic growth throughout Québec,” said Minister responsible for Native Affairs Geoffrey Kelley.

“In January at the World Economic Forum in Davos, Switzerland, our government signed an agreement in principle with Tata Steel to establish a long-term, mutually beneficial economic partnership. Today we are delighted to reap the benefits of those efforts and boost Québec’s mining ndustry with this large-scale project,” stated Minister Dominique Anglade.

Koushik Chatterjee, group executive director for Tata Steel Ltd., said, “We are happy to see that our collaboration with the Québec government has made significant progress and we are thankful that the government has decided to join Tata Steel in this joint venture. These are difficult times for the global iron ore industry due to low demand, excess capacity in the steel industry, and volatile fluctuations in exchange rates. We will continue to work closely with the Québec government and other stakeholders to do everything we can to improve the competitiveness of the Canadian iron ore market and make it more viable for the future.”

NoticeThe statements in this press release may be “forward-looking statements” within the meaning of the applicable laws and regulations governing securities. Actual results may vary significantly from those directly or indirectly expressed, inferred, or implied. The important factors that could make a difference in the Corporation’s operations include economic conditions affecting supply and demand and prices on the domestic and overseas markets where the Corporation conducts business, changes in or due to the environment, government regulations, laws, rules, judicial decisions, and/or other unexpected factors.